Gold Shines Brighter in the Charts

Gold and gold-mining stocks have had a rough two months, but don't count them out just yet.

Just a month ago, gold looked ready to head back to its old highs following a short-term technical breakout and resumption of the long-term trend (see Getting Technical, "The Trend is Gold's Friend Again," Nov. 26). Then concerns over global deflation knocked the market down hard, negating the breakout and sending prices tumbling.

From analyst calls for gold to drop to $1,200 per ounce to a general feeling in technical...